Energy Efficiency Regulations (EPC)

Information: All applications must have a valid Energy Performance Certificate (EPC) rated E or above, or a valid exemption.

For applications above 75% LTV, the property must have an EPC rated C or above. Applications on properties which don't meet this criteria will be declined.

If an application is submitted without a valid EPC we'll ask you to provide a valid EPC. Until this is received, the application won't progress and a valuation won't be instructed. This doesn't apply to New Build applications.

When inputting the property address, please ensure this is keyed correctly as we'll automatically verify that it has a valid EPC or exemption on the register.

For applications over 75% LTV that are declined due to a property’s EPC rating not being C or above: appeals will not be accepted, and an application will need to be resubmitted with an LTV of 75% or below and a new product selected.

Currently, in England and Wales, landlords must ensure their properties have an Energy Performance Certificate (EPC) rating of ‘E’ or higher - this applies to properties where there are existing tenants, as well as properties where a new tenancy is being created.

Please note: the requirement for an up front proof of EPC rating is not required for a New Build application. An EPC will not be available until after the property is completed.

The Department of Business, Energy and Industrial Strategy (BEIS), is currently leading on a consultation to improve the energy performance of privately rented homes, which if implemented as legislation, would see the minimum EPC rating increased to C from 2025 for new tenancies and from 2028 for existing tenancies.

The current rules for properties in Scotland are different - for more information, read our approach to the Energy Efficiency Regulations.

Check your client’s property has a valid EPC by using the links below, dependent on your region:

For England and Wales - Find an energy certificate
For Scotland - Scottish Energy Performance Certificate Register

We require a valid EPC or exemption to be in place at application. The policy on EPC’s varies by the LTV of an application:

For applications at 75% LTV or below: properties must have an EPC rating of E or above, in line with current legislation.

For applications over 75% LTV: to balance the need to support a key segment of the Buy to Let market, whilst recognising future ambitions across the Private Rental Sector to achieve more energy efficient homes, properties must have an EPC, rated C or above at application.

Below are the full details of the TMW EPC valuation policy:

Further advance applications This will reveal additional content

All applications require a valid EPC before submission. For further advances on a property without a valid EPC, the Valuer will be unable to recommend the property as a suitable security. The property can be reconsidered once a valid EPC is provided.

Applications will be considered where a property’s EPC rating is outside of The Mortgage Works policy subject to the following:

For applications at 75% LTV or below: if the EPC rating is ‘F’ or ‘G’, a further advance will only be accepted where the sole purpose of the additional borrowing is to fund improvements to make the property compliant with EPC minimum standards, i.e. (‘E’ rated or above).

For applications over 75% LTV: if the EPC rating is D, E, F or G, a further advance will only be accepted where the sole purpose of the additional borrowing is to fund improvements to make the property compliant with TMW policy for lending over 75% LTV (‘C’ rated or above).

The Valuer will assess the EPC data and detail any works needed to bring the property to the minimum standards above in the valuation report. The costs of any works will be reflected in the valuation figure.

If the application is for a Green Further Advance product - a condition will be placed on the mortgage offer confirming the works must be undertaken within 3 months and The Mortgage Works reserves the right to reinspect the property 3 months after completion to ensure the works have been carried out or request an updated EPC to show the improvements have been made.

If the application is for any other Further Advance product, as per current retention policy, the application can proceed where the cost of work is no more than:

£2,500 (for properties with a current value of up to £100,000)
£5,000 (for properties with a current value over £100,000)

A full retention will be applicable if the cost of the work exceeds the values above.

The maximum loan and LTV will be calculated on the purchase price or the figure before the work whichever is lower.

For portfolio applications the valuation policy detailed here will only apply to the subject security of the new application. We won’t currently assess EPC ratings on wider portfolio properties held with other lenders.

Purchase and remortgage applications (including Porting) This will reveal additional content

In accordance with the Minimum Energy Efficiency Standard Regulations, valuers are unable to recommend the property as a suitable security where no valid EPC exists or it has been rated as ‘F’ or ‘G’.

However, the property can be reconsidered if a compliant EPC (A-E rating) can be submitted or where proof of a valid exemption can be provided.

Exemption details can be found at Domestic Private Rented Landlord Guidance.

Post completion lending criteria This will reveal additional content

Whilst landlords must still comply with new regulations, there is no change to our valuation policy for post completion contract variations, such as transfer of equity, conversions or term amendments (however, please see above for porting applications).

Scottish properties This will reveal additional content

Purchase, remortgage and further advance applications (including Porting)

The Mortgage Works will continue to lend on properties with an EPC rating of F or G. However, the Valuer will assess the EPC data and detail any works needed to bring the property to a minimum ‘E’ rating in the valuation report.

The costs of any works will be reflected in the valuation figure. A condition will be placed on the mortgage offer confirming the works must be undertaken within 3 months, unless your client sends us proof of a valid exemption or an updated EPC prior to completion. Exemption details can be found at Domestic Private Rented Landlord Guidance.

The Mortgage Works reserves the right to reinspect the property 3 months after completion to ensure the works have been carried out.

As per current retention policy, the application can proceed where the cost of work is no more than:

£2,500 (for properties with a current value of up to £100,000)
£5,000 (for properties with a current value over £100,000)

A full retention will be applicable if the cost of the work exceeds the values above.

The maximum loan and LTV is calculated on the purchase price or before works figure, whichever is lower.

On purchase applications where an EPC record isn’t available to the Valuer, they’ll be unable to recommend the property as a suitable security and we’ll request evidence of EPC details or exemption from you or your client.

As part of any further advance or remortgage with capital raising application, for example to purchase or refurbish another property, we’ll expect your client to carry out the works required to bring the security asset up to a minimum ‘E’ rating.